UBC Phar400 Intro to Marketing 10Oct2014

UBC – Phar400 | Pharmacy ManagementpharmacySOS.ca | Gerry Spitzner

October 10, 2014

Universal terms used in Marketing. And acronyms.

When I refer to product or service = the same thing.

When I refer to patients, consumers, customers or

clients; all are the same person. The end user.

When I refer to “you” or “your”…it’s a generic term

respectfully referring to you as the Pharmacist,

Pharmacy Mgr or Owner or the Pharmacy itself.

pharmacySOS.ca | Gerry Spitzner 2

Objective: Define marketing and explain how the marketing concept works and is applied to Pharmacy patient services.

Thoughtstarters/important insights

Brand and Branding

Marketing 101

Managing the Marketing Mix

Professional Services Marketing Mix

The Marketing Plan

Myths & Mistakes of Pharmacy Services Marketing


Marketing is the most often

misunderstood business function.



It’s 2014 and 99 percent of people in our industry are stuck in

the mud marketing their services like it’s 2004 or even 1994.


Traditional marketing has collapsed in terms of getting the

attention of a consumer.


Every single marketer out there is a storyteller.

What is “Push” vs. “Pull” marketing?

“Push and pray” is the old marketing paradigm which

assumes that messages sent out blindly and broadly

will magically lead to loyal, long term customers.

“Pull and stay” uses an approach that brings the right

customers through listening and engagement;

enabling the business to build trusted relationships

and position it as the customers logical choice; when

the customer needs you.


In today’s world, business is built on relationships.

◦ People do business with people they know, like and trust.

◦ Put relationships first – then reap the long term high quality

business growth that follows.

◦ Consider the life time value of a customer rather than just as a

single one-time transaction. Always think customers for life.

◦ Understand why, how and what products/services patients need

and want to buy, rather than what you want to sell to them.


When the care is patient-centred and focused on their health

rather than accuracy, compliance and disease education,

customers are much more likely to be satisfied with the care

process, and to refer others.

Focus primarily on the relationship of marketing to the most

important beneficiary of pharmaceutical care: the patient.

Ultimately, care needs to be about them and what they can do

to improve their health.


What’s the difference?

One is a feeling and one is an activity.

11pharmacySOS.ca | Gerry Spitzner

The sum of the perceptions that are held about you, your company and your products/services.

◦ Including perceptions held by both external and internal audiences and stakeholders.

How people think and talk about you when you’re not there.

◦ A brand is any person’s emotional response - a gut feeling about you, an organization, a product, or a service.

Your customers & patients own your brand, you do not.

◦ You don’t have direct control of the perceptions held by them.


Branding is the universe of activities you undertake

that affects brand perceptions.

In order to effectively build a positive brand

perception, you must engage in both internal and

external activities which are aligned to deliver a

consistent impression of who you are, what you do,

how you do it and why.



Horizontal Brand‘One thing for a bunch of people’

Vertical Brand‘A bunch of things for one person’



Simon Sinek; There’s no such thing as “re-branding”.

A brand’s WHY is either clear or it’s fuzzy. And if it’s

fuzzy, changing the look won’t help.


All you need is a planned approach

to marketing that targets the right

customers, gives them the

information and advice they want,

and eliminates what they don’t want

– a sales pitch.



One thing to be clear

about is that marketing

is NOT sales. Selling and

closing sales is different.

the same as advertising

becoming a “salesperson”

manipulating customers to buy

cold calling

using hype or exaggeration

making quick sales

using high pressure sales tactics

a task, a department or a job

a stand-alone activity


“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.”

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

“Marketing is the process of creating, communicating and delivering the value of a product or service to customers.”

Wikipedia


It is how you get customers.

◦ Promotes product/service awareness to the public, boosting sales while at the same time building the company's reputation

◦ Identifies new product/service areas and new or potential customers

◦ Identifies your competitors and makes you analyze what their advantages are

◦ A solid marketing plan will help you identify your customer's needs and wants


NEED: a state of felt deprivation

◦ (e.g. physical needs, social needs).

WANT: a desire for a specific satisfier of a need

◦ thus needs become wants, which are shaped by culture and

individual personality.

DESIRE: a want that is backed by an ability to pay.

◦ The job of a marketer is not only to meet or respond to people’s

NEEDS, but also to help customers learn what they WANT.

◦ Marketers do not create NEEDS, but they do help to translate

NEEDS into WANTS.(Source: Desselle & Zgarrick, 2005)


Market segmentation refers to the division of a target market of consumers into people with similar needs and wants.

Market segments allow companies to create product differentiation strategies to target them.

◦ Geographic Segmentation: geographic areas

◦ Demographic Segmentation: age, sex, education, occupation, family size, etc.

◦ Psychographic Segmentation: lifestyle, interests, values, attitudes

◦ Behavioural Segmentation: benefits desired

◦ Occasion Segmentation: Christmas, weddings, birthdays



Size of the market.

◦ How common is the condition (or the need for service) in the pharmacy's geographic area?

Obstacles to market entry.

◦ Does substantial competition already exist for proposed service?

Potential revenue and profit.

◦ How much revenue could be generated through service provision?

Patient access.

◦ Can prospective patients reach the pharmacy easily?

Patients’ attitudes and behavior.

◦ Is there willingness & readiness of patients to participate actively?



Source: William R. Doucette, PhD; Randal P. McDonough, PharmD, MSPharm; J Am Pharm Assoc (2003) 2002

Marketing involves conducting research to support

marketing activities; and the statistical interpretation

of data into information.

Understanding both your customers and your

competition through customized market research can

help guide your most important business decisions.

◦ Define the question

◦ Collect the data

◦ Analyze the data

◦ Choose the best solution & implementNickels 6e/Copyright © 2007 McGraw-Hill Ryerson


Refers to the factors and forces that affect a firm’s

ability to build and maintain successful relationships

with customers viewed from two perspectives…

◦ Micro environment (or near environment) refers to the forces

that are close to the company and affect its ability to serve its

customers. I.e. the company itself, its suppliers, marketing intermediaries, (those that help to

sell, promote, and distribute goods), customer markets, competition and the public.

◦ Macro environment (external environment) refers to all forces

that are part of the larger society and affect the micro

environment. I.e. demographics, economy, natural forces, technology, politics, and culture.


PEST is the acronym; means

Environmental scanning is one technique used by

organizations to monitor the market environment at a

given point in time.

The factors which need to be considered for environmental

scanning are events, trends, issues and expectations of the

different interest groups.

The results are often compiled and summarized on a single

spreadsheet for easy comparison and understanding.


Putting the right product in the

right place, at the right price, at the

right time.



www.smartdraw.com

Product (or service)

◦ What are you going to sell? This is the item or, in the case of pharmaceutical patient care , the service being marketed.

Price

◦ How much can you charge ? Setting the appropriate price for a service is essential to marketing it successfully.

Promotion

◦ How will people find out about your service? In addition to advertising, promotional activities include publicity, PR, and personal selling.

Place

◦ Where will people buy your service? Making the service available at the right time and place is important to the success of patient services.


The service must deliver a minimum level of

performance; otherwise even the best work on other

elements of the marketing mix won't do any good.

Defined as anything, either tangible or intangible,

offered by the Pharmacy; as a solution to the needs

and wants of the patient/customer.

The service has to have the right features - for

example, it must look & sound good and work well.


Of all the aspects of the marketing mix, price is the one,

which creates sales revenue - all the others are costs.

The price must be right. Customers will need to buy in large

numbers to produce a healthy profit.

Each product requires its own pricing strategy. Some of

the more common strategies are:

◦ Achieving a target return on investment

◦ Building traffic

◦ Achieving greater market share

◦ Creating an image


The three basic objectives of promotion are :

◦ To present product/service info to targeted customers.

◦ To increase demand among the target market.

◦ To differentiate a product and create a brand identity.

Promotion mix attempts to engage potential

customers in an information exchange.

Promotional Tools used in exchange of information;

◦ Advertising

◦ Internet


◦ Public relations

◦ Direct Marketing

◦ Personal selling

◦ Sales promotion

The product/service must be in the right place at the

right time. Making sure that the service is available

when and where it’s wanted is very important.

Catching the eye of the consumer and making it easy

for her to buy it is the main aim of a good distribution

or 'place' strategy.

3 Distribution Strategies…

◦ Intensive - puts services in as many retail stores as possible.

◦ Selective - uses a preferred group of retailers.

◦ Exclusive - use of only one retail outlet in a geographical area.


The marketing mix model can be used to help you

decide how to take a new offer to market.

Once you have a well-defined marketing mix, try

"testing" the overall offer from the customer's

perspective, by asking customer focused questions:

◦ Does it meet their needs? (product)

◦ Will they find it where they shop? (place)

◦ Will they consider it's priced favorably? (price)

◦ Will the marketing communications reach them? (promotion)


In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions.

Product (service) Solution

Promotion Information

Price Value

Place (distribution) Access

The customer-focused marketing approach is known as SIVA. This system is basically the four Ps renamed and reworded to provide a customer focus.


All elements of the marketing mix influence each other.

Product, placement, promotion, and price are crucial to

determining a brand's unique value proposition.

Marketing is not a stand-alone activity. It is integrated

with all other functions of your business.

The marketing mix needs a lot of understanding, market

research and consultation with people, from customers

and patients to inter-professionals, to suppliers and any

others in the distribution system.


All of these elements work together

to play a part in where the target

market, ideal audience and ideal

customer will do business and

repeat buy Professional Services.



www.smartdraw.com

Process

◦ How services are consumed. Providing and delivering a service and the behaviour of those who deliver it.

People

◦ Who delivers the service. The reputation of your brand rests in your people’s hands.

Physical Environment/Evidence

◦ A service can’t be experienced before it’s delivered.

◦ Testimonials can provide evidence that a Pharmacy keeps it’s promises.

◦ Clean, well decorated and tidy facilities can also reassure.


Relationship marketing moves beyond the basic

principles of the 7 P’s Marketing Mix to include…

One-on-one marketing. Personal selling.

Identify groups of like-minded customers.

Retain patients.

Take a longer-term view.


Every encounter with a patient is an opportunity to establish or build a closer professional bond.

◦ “Has your doctor told you what to expect from this medication?”

◦ “Do you know what your goals are for this therapy?”

◦ “How is this medication working for you?

◦ “Have you had any problems you'd like to discuss?”

◦ “Let me tell you about your condition so you understand how best to manage it,”

◦ “Let me tell you about the benefits of your medication and why it is important to take it every day”


Approach Dialogue

Sounding tentative or apologetic about fees: “Mrs. Webb, with all these prescription and

nonprescription medications you’re taking, I think you

might benefit from sitting down with one of our

pharmacists for a medication review session.

Unfortunately, we have to charge for this service.”

A more persuasive and positive way to state this

information would be to say:

“Mrs. Webb, with all these prescription and

nonprescription medications you’re taking, you could

benefit from a personal consultation with one of our

pharmacists, who would review your medications with

you. Our professional fee for this service is $60.”

Another key is to close the sale with confidence: “This service takes about 30 minutes. We have the

time now or we could schedule an appointment for you

on another day this week.”


The purpose of the marketing section of

the business plan is to convince

readers that your business or planned

service provides a great opportunity.


The Market Description

◦ describe your market in terms of size, value, history, recent growth trends and anticipated future growth.

The Customer Profile

◦ describe the characteristics, attributes, behaviors, and traits of your customers.

The Competition

◦ identify and discuss each major player currently operating within the industry

The Marketing Plan

◦ consists of three main areas; the Pricing Strategy, the Distribution Strategy, and Advertising & Promotions.


Executive summary — "What is my overall plan?“

Identify yourself — "Who am I and what are my values & abilities?“

Describe the product or service — "What need do I meet?“

Identify your target market — "Who are my customers?“

Know your competitor — "Who else can woo my customers?“


Define your distribution and delivery channels — "How

will I deliver my service to my customers?"

Group your activities — "How will I reach my customers?

Outline a plan to deal with challenges — "How will I handle

the unexpected?“

Indicate your pricing strategy — "How much should I charge?"

Project where you will be in five years — "What are my long-

term goals?“


When writing the marketing strategy, be sure to

include at least the following:

◦ Define the people who are you customers.

◦ What groups of consumers will buy from you?

◦ How will you advertise to your target market?

◦ Where and what businesses are competing against yours?

◦ How is your business different from the competition?

◦ What is your competitive edge?

◦ Your value proposition.


To compete in this market,

Pharmacy professional service

providers must challenge the

conventional wisdom in our industry

on marketing and selling their

professional patient services.


Myth 1: Flawless Work Is Enough

Myth 2: Effective Marketing Plans Are Tough To Create

Myth 3: Internet Offers Limited Marketing Opportunity

Myth 4: Best Practices Work

Source: Raintoday.com


1. Relying on word of mouth

2. Relying on one marketing method

3. Competing on low prices & “free” stuff

4. Incomplete marketing message

5. Not effectively reaching ideal audience

6. Creating an overly complex marketing plan

7. Delaying marketing until cash flow improves

8. Selling services with a sales pitch


Marketing is everything. Marketing isn't for quitters.

Take steps for nurturing long-term leads.

Professional services marketing is undergoing

profound change.

Physicians are among the most important partners to

target through relationship marketing.

Traditional marketing is not dead – nor is it dying.


Find a need

Conduct research

Identify a target market and ideal customer

Design a service to meet the need based on research and then

conduct testing (proof of concept)

Determine a brand name and design a service

Set a price

Select a distribution system

Design a promotional program

Build a relationship with customers



Our vision for Pharmacy professional services is only

actionable if we share it.

Lets share what makes us different because everyone

can already see what makes us the same.

Without sharing, it’s just a figment of our imagination.



Got questions? Get answers? Email me…


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Gerry Spitzner is an optimist with a natural "kid-like“ curiosity for improving life and business results. He believes in

a bright future and our ability to build it together and is passionate about making the public aware of the great things

Pharmacists do.

Drawing on 35+ years experience in multi-site retail Pharmacy operations, drug store ownership and the

Pharmaceutical wholesale supply-chain; Gerry brings the leadership, knowledge and market awareness of business

development to retail Pharmacy owners helping them achieve growth objectives. He teaches and inspires

Pharmacists to achieve results by aligning their vision with marketing strategy and operational execution.

Fascinated with a lifelong curiosity for why customers buy and a passion for retail Pharmacy; Gerry guides leaders

and organizations to create, engage and keep great customers by delivering the promise of an extraordinary

customer experience. He has devoted his life to sharing his thinking with other Pharmacy leaders to manage

market analysis and build business plans that increase profitability and create competitive advantage with systems

to implement.

His company is pharmacySOS.ca, a Vancouver-based business management consultancy with a suite of business

services focused on helping Pharmacists implement business development, branding and marketing. With a clear

understanding of the business of Pharmacy he uses a solution oriented focus with ideas and alternatives that clients

can use to address the changing practice issues they face right now. Gerry understands who they are, what they

need, and where to find it; helping them market and strategically realign their professional and clinical services to

integrate the business activities of optimal drug therapy outcomes through patient centered care.
